HKCEE ECONOMICS | 2.1 Demand and Supply | P.
36. 1998/II/10
Suppose the rice production in Thailand suffers a serious fall in output and hence less rice is exported to Hong
Kong. Which of the following is a result of this event?
37. 1999/II/12
In the above diagram, E0 is the initial equilibrium point of the market for Hong Kong’s garment products in the
U.S. Suppose there is an increase in import duties in the U.S. and many U.S. retailers order from other Asian
countries instead of Hong Kong, the new equilibrium point in the diagram would be
A. Ea B. Eb C. Ec D. Ed
38. 2000/II/3
In the above diagram, when the price P1 increases to P2,
A. the excess demand will disappear. B. the quantity transacted will decrease.
C. the total revenue will necessarily increase. D. the total revenue will increase only if the demand is inelastic.
39. 2000/II/5
It became more difficult to find a metered car parking space by the roadside after the fee for a parking space
was reduced from $4 to $2 for every 15 minutes. It was also reported that the fee in a car park remained at
$15 per hour. Which of the following about the effect on metered car parking by the roadside is correct?
A. It can be explained by the law of demand. B. It is an increase in demand.
C. The equilibrium quantity decreases. D. The demand is elastic.
25
HKCEE ECONOMICS | 2.1 Demand and Supply | P.9
40. 2000/II/7
The diagram above shows the market of tours for Hong Kong people to Japan. The initial equilibrium is at E0.
Because of economic recession, fewer Hong Kong people spend their holiday in Japan. Moreover, the Japanese
Yen appreciates against the Hong Kong dollar.
The new equilibrium point in the market will be at
A. Ea B. Eb C. Ec D. Ed
41. 2000/II/8
Refer to the following demand and supply schedules of a good.
Price per unit $25 $30 $35 $40 $45
Quantity demanded (units) 120 100 80 75 60
Quantity supplied (units) 60 75 80 100 120
According to the above information, we can conclude that
A. the total sales revenue would be $3 000 when the price is $30 per unit.
B. a unit subsidy of $10 on production would cause the equilibrium price to drop by $5.
C. a higher salaries tax would raise the market price to a price greater than $35.
D. the seller could set the price at $40 to gain the highest profit.
42. 2000/II/9
Which of the following is an example of joint demand?
A. the courier service (!"#$%&) of a local firm and the postal service of the government
B. the Airport Express train service and the Tung Chung Line train service
C. magazines and printing paper
D. floppy diskettes and floppy diskette drives
26
HKCEE ECONOMICS | 2.1 Demand and Supply | P.10
43. 2000/II/12
Which of the following diagrams shows the result of an improvement in the technology used in producing digital
versatile disc (DVD) players ?
44. 2001/II/3
‘Compared to last year, more watermelons were sold this summer and the price was lower.’ This is because
there was a (an) __________ in the __________ watermelons.
A. increase … demand for B. decrease … demand for
C. increase … supply of D. decrease … supply of
45. 2001/II/4
‘A rise in the price of a good will cause a decrease in demand for it and an increase in its supply.’
The above statement is
A. correct because a change in price will change both demand and supply.
B. incorrect because a rise in price will only increase the supply.
C. incorrect because a rise in price will only decrease the demand
D. incorrect because both demand and supply will not change as a result of a change in price.
46. 2001/II/5
Which of the following diagrams shows the result of a significant increase in the annual license fee for private
cars.
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HKCEE ECONOMICS | 2.1 Demand and Supply | P.11
47. 2001/II/10
The diagram below shows the supply and demand curves of imported Japanese automobiles in Hong Kong. The
original equilibrium point is at E.
If there is an increase in the transportation cost from Japan to Hong Kong and more similar models of Korean
automobiles with cheaper price are imported, the new equilibrium points will be at
A. E1 B. E2 C. E3 D. E4
48. 2002/II/6
The following table shows the supply of and demand for Good X
Unit price ($) Quantity demanded (units) Quantity supplied (units)
2 20 4
4 16 8
6 12 12
8 8 16
10 4 20
If the government raises the price ceiling from $4 per unit to $8 per unit, the quantity transacted will
A. increase by 4 units. B. increase by 8 units. C. decrease by 8 units. D. decrease by 4 units.
49. 2002/II/7
Refer to the following diagram :
Which of the following would lead to the above change in demand from D1 to D2?
A. an increase in the toll fee for taxis using the cross harbour tunnels
B. an increase in the frequency of cross harbour bus services
C. a fall in the wage rate of bus drivers
D. a fall in the ticket price for Mass Transit Railway services
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HKCEE ECONOMICS | 3.1 Price ceiling | P.1
1. 1992/II/27
The above diagram shows the price and quantity of Good X. The price increases from Pc to Pe after the price
ceiling is cancelled. As a result, the total expenditure on Good X will
A. increase B. decrease
C. remain unchanged D. either increase or decrease, depending on its price elasticity of demand
2. 1994/II/10
The above diagram shows the supply of and the demand for the tickets of a concert.
If the tickets are sold at P2 in stead of P1,
(1) a black market may occur.
(2) the sales revenue will be smaller.
(3) the quantity transacted will be greater.
(4) the sales revenue may increase or decrease, depending on the price elasticity of demand.
A. (1) and (2) only B. (2) and (4) only C. (2) and (3) only D. (3) and (4) only
3. 1996/II/8
Shortage occurs when
A. a price floor below the equilibrium price is imposed. B. an effective price ceiling is imposed.
C. the supply is reduced. D. the demand increase sharply.
4. 1996/II/9
Suppose initially the price of a certain good is fixed below the market equilibrium. Relaxing the price control
will lead to
(1) an increase in revenue.
(2) a decrease in demand.
(3) an increase in revenue only if the demand for this good is inelastic.
(4) an increase in the quantity supplied.
A. (1) and (2) only B. (1) and (4) only C. (2) and (3) only D. (3) and (4) only
41
HKCEE ECONOMICS | 3.2 Price floor | P.2
5. 2000/II/6
Hong Kong’s recent economic recession has caused a decline in people ’s income. In view of this, the government
decided to lower the effective minimum wage level of Filipino maids. As a result of these TWO changes,
(1) the demand for Filipino maids should decrease.
(2) the quantity supplied of Filipino maids should decrease.
(3) the excess supply of Filipino maids should decrease.
(4) the total expenditure on the employment of Filipino maids should drop.
A. (1) and (2) only B. (2) and (3) only C. (1), (2) and (3) only D. (1), (3) and (4) only
6. 2004/II/12
Refer to the above diagram. Which of the following statements is correct?
A. If a price ceiling is set at P1, the quantity transacted is Q3.
B. If a price floor is set at P1, the quantity transacted is Q2.
C. If a price floor is set at P3, the quantity transacted is Q2.
D. If a price ceiling is set at P3, non-price competition will occur.
7. 2007/II/7
An imposition of a minimum wage legislation would increase
A. the employment opportunities of unskilled workers
B. the total wage payment to unskilled workers
C. the unemployment of unskilled workers
D. the inflow of foreign investment
8. 2008/II/12
The government raises the effective minimum wage of imported workers,
A. the employment of imported workers will increase
B. the problem of shortage of imported workers will become more serious
C. the unemployment rate of local workers will increase
D. the total wage earnings of local workers will increase
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HKCEE ECONOMICS | 3.3 Quota | P.2
6. 2008/II/9
Country A reduces the quantity of an effective quota on clothing imported from Country B. At the same time,
imported clothing from other countries to Country A has become cheaper.
Which of the following graphs can illustrate the changes in Country A’s market of clothing imported from
Country B? E1 is the original equilibrium point and E 2 is the new equilibrium point.
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